1.Motor vehicles & conveyances
ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver).
Further, ITC is not available on vessels and aircraft.
For example, XYZ & Co. buys a car for their business. They cannot claim ITC on the same.
2. Food, beverages, club memberships and others
ITC is not for the supply of following goods or services or both:
- Food and beverages
- Outdoor catering
- Beauty treatment
- Health services
- Cosmetic and plastic surgery
Examples – Ajay Enterprises arranges for an office party for its employees. Ajay Enterprises will not be able to claim ITC on the food & beverages served.
3. Services of general insurance, servicing, repair and maintenance
No ITC is allowed on services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles.
4. Sale of membership in a club, health, fitness centre
No ITC will be allowed on any membership fees for gyms, clubs etc.
Example – X, a Managing Director has taken membership of a club and the company pays the membership fees. ITC will not be available to the company or Mr. X.
5. Rent-a-cab, life insurance, health insurance
ITC is not available for rent-a-cab, health insurance and life insurance.
6. Works contract
ITC shall not be available for any work contract services. ITC for the construction of an immovable property cannot be availed, except where the input service is used for further work contract services.
7. Constructing an immovable property on own account
No ITC is available for goods/services for construction of an immovable property on his own account. Even if such goods/services are used in the course or furtherance of business, ITC will not be available.